UNDP sees public-private partnerships for investments in infrastructure as vital for achieving sustainable development

New York – With
populations growing, some estimates suggest annual infrastructure spending in
developing countries must increase between US$1.8-2.3 trillion each year by
2020, and more of these resources must come from the private sector through
public-private partnerships, according to Magdy Martínez-Solimán, UNDP’s
Director of Bureau for Policy and Programme Support.

“As we embark on a new era of advancing the global
development and climate change agendas, in particular public-private
partnerships will play an essential role,” Martínez-Solimán said. “UNDP has
seen, by creating the right systems – meaning policies, institutions and
budgetary frameworks – increased private finance can be unlocked and countries
can more effectively transition toward low-emission and climate-resilient
development.”

Mobilizing resources for infrastructure development,
particularly in the energy, health, education, water and sanitation, transport
and communication sectors, will be critical for promoting economic growth,
social inclusion and environmental sustainability. While global public and
private savings would be sufficient to meet the financing needs, current
investment in infrastructure remains vastly insufficient, with limited
availability of both public and private capital for infrastructure development
in developing and developed countries.

Martínez-Solimán joined high-level Member State officials,
representatives from the private sector, civil society and academia and other
senior UN officials on the opening day of the high-level thematic debate of the
General Assembly on Means of Implementation for a Transformative Post-2015
Development Agenda. The debate underscored the need to reach agreement on the
post-2015 development agenda and focus on ensuring its effective
implementation.

Adequate means of implementation – financial resources,
technology development and transfer and capacity-building – will be critical to
delivering on and implementing a truly transformative and ambitious post-2015
development agenda. Participants addressed key issues related to mobilizing the
means of implementation, such as what actions are needed to scale up
mobilization of financial resources from all sources.

During the 69th session of the General Assembly,
Member States and other stakeholders will be engaged in intergovernmental
negotiations expected to lead to the adoption of the post-2015 development
agenda, including a proposed set of sustainable development goals, by world
leaders in September.

Speaking during the debate’s panel discussion on mobilizing
resources for infrastructure development, Martínez-Solimán said investing in
sustainable and resilient infrastructure supports economic activity and jobs in
the short run and lays the foundations for inclusive and sustainable growth
over the long run.

“The sustainable development goals will most probably have a
goal on infrastructure that requires our new infrastructure to be resilient, of
superior quality, sustainable and aimed at development, human wellbeing and
access to better living standards, beyond borders,” Martínez-Solimán said.

Martínez-Solimán said infrastructure makes life better,
economies more competitive, and adds jobs during creation, but also entails
risks that need to be mitigated, such as increased emissions, gender-biased
employment opportunities, unmanageable debts, impact on populations and their
livelihoods, and environmental degradation.

“Investments in energy and water and in infrastructure that
allow producers to reach the market, remain the highest priority together with
social, midsize infrastructure,” Martínez-Solimán said. “We need long highways
and IT infrastructure, but we still need rural schools in the villages and
clinics in the suburbs of our megacities.”

Noting that the post-2015 development agenda offers the
opportunity to think more broadly about development finance, Martínez-Solimán
said the upcoming Financing for Development Conference in Addis Ababa in July
provides an important opportunity for the international community to discuss
the financing demands for infrastructure, within the context of the new agenda.